Impact of ADD on insoluble sulphur prices & production in India

Insoluble sulphur, a crucial vulcanising chemical used mostly in the production of rubber and tires, has experienced notable price escalation in the recent months. This upward trend is primarily driven by rising costs of its raw material sulphur, Intensified industrial activity, especially within the chemical and fertiliser sectors, has tightened sulphur supply in key markets such as China, Southeast Asia exerting considerable pressure on global pricing dynamics.

Insoluble Sulphur Prices in India

Insoluble sulphur's prices have been greatly impacted by rising crude oil prices, which have increased production and shipping costs. Cost pressures in India, where a steady upward trend has been noted, have increased as a result. The price increased by almost 29 per cent, from ₹124 (~$1.45) to ₹160 (~$1.87), per kilogram during the six-month period from December 2024 to May 2025. The cost of raw materials has increased, but this increase also reflects shifts in international trading patterns that continue to affect market dynamics.

Impact of Anti-Dumping Duties on Insoluble Sulphur Imports from China and Japan

The government has imposed anti-dumping duties on the import of ‘Insoluble Sulphur’ originating from China and Japan to protect the domestic industry from unfair pricing. Imports from China attract a duty of $307 per metric ton when exported to any country, while imports from Japan are subject to duties ranging from $259 to $358 per metric ton, depending on the producer and export destination.These measures aim to counteract dumping practices and ensure fair competition in the Indian market.

Expected Market Impacts

 Prices

• Short-term: The immediate effect will likely be further price increases. Chinese and Japanese imports, previously available at lower prices due to dumping practices, will now be costlier, reducing the availability of cheap imports.
• Medium to Long-term: Domestic producers may raise prices modestly, leveraging reduced competition. However, price hikes may be moderated if alternate import sources (e.g., Korea, Europe) step in or if demand growth plateaus.

  Domestic Production

• Boost in domestic manufacturing: Indian manufacturers are likely to scale up production in response to improved margins and reduced price pressure from imports.
• Investment incentive: The duties could attract investment in domestic capacity expansion and modernisation, given the stability ensured by a five-year protection window.

 Trade & Supply Chain

• Importers may diversify sourcing to avoid duties, potentially importing from duty-free regions.
• Supply bottlenecks could occur in the short term, as importers recalibrate their sourcing strategies, contributing to price volatility.

Major Producers of Insoluble Sulphur

OCCL India

Shikoku Chemicals Corporation, Japan

Nynas, Sweden

China Sunsine Chemical Holdings Ltd (China Sunsine)

Conclusion

The imposition of anti-dumping duties on insoluble sulphur imports from China and Japan marks a strategic move to protect domestic producers, encouraging self-reliance and industrial growth in India’s specialty chemicals sector. While prices are already on an upward trend due to raw material costs and global demand pressures, the duties will likely reinforce this trajectory in the short term.

Over time, as domestic production scales and stabilises, the market could witness greater price equilibrium—though much depends on global sulphur dynamics and geopolitical developments in Asia.

ALCHEMPro News Desk (VK)